Question

Which business financial statement is used primarily to look at how a company has been doing over time and predict how it might do int he near future?

income statement
balance sheet
cash flow
changes in equity

Answer 1

The business financial statement used primarily to look at how a company has been doing over time and to predict how it might perform in the near future is the **income statement**. The income statement shows a company's revenues, expenses, and profits over a specific period, allowing stakeholders to assess past performance and make forecasts about future profitability.